How will opportunities and the availability of capital change in this new century as a result of this economic and social revolution? How can one be best prepared for this?
To look into how the availability of the capital change in the new century as a result of an economic and social revolution, let’s look at how things changed in the past due to similar happenings. Mark Twain called the late 19th century as ‘Gilded Age’ in the United States. Everything during this period glittered even those which were not perfect. America experienced a second industrial revolution during this period they experienced a tremendous change in the economy, technology, and society (Lindenmeyer, 2002). This helped America transform itself into an industrial power from rural communities. The nation saw the fastest growth in wealth, GDP, capital, and wages compared to national history despite all the hurdles during this period.
Economic revolution as its name suggest has to do with the economic growth of the organization, nation or the world in a bigger picture. This growth creates more opportunity for establishing the business environment (Wright, 1987). Samsung is a company which invests in all kind of R&D and their products range from small microchip to huge battle tanks. Their movement from mobile business to now OLED glasses, processors and other avenues is certain to bring transformation in the economic front. This is also Samsung anticipating a change in the economy and trying to adjust to the ecosystem.
Social revolution occurs when the preferences, taste, literacy rate and/or the living standards of the people change in the target area. This brings change in the society, technology and the culture as a whole and helps people settle down in a place rather than move around like in the initial example of the American community (Palat, 1997). The industrial revolution brought with it some change in the lifestyle of the people, making things easier, faster and comfortable. While commuting, what would have happened if there were no modes of transportation? Similarly, trade and availability of food have also contributed to it.
As a consequence of the economic and social revolution in this new century which is also referred to as Smart age. It is likely that the availability of capital and opportunities are more and more inclined towards innovation. The one who can be creative and innovate to the changing need of their target segment can survive, while the other loose out. Especially technological advancement has redefined the market competitiveness by creating spaces for radical innovation and no boundaries on where you can go to sell your products. Like a small business in Nepal don’t have to have their office in the United States to sell their, through the internet with right marketing tactics, they can sell their products not only in the United States but anywhere in the world with no physical presence in that region. Regardless of the investment, everyone has equal but differentiated opportunities and access to capital.
Novelty is the new secret to sustainability and success in the current world and a tool to best prepared for any revolution. You see that these days’ people are fascinated by something new, especially as the world is growing younger than ever, people are much more interested in experimentation. Take an example of Poko phone itself released a few days ago in India, the hype was so real that all the phones sold out within 5-minutes. Also, one must be able to identify the current trend, where the business is going and where the industry as a whole is moving forward and form strategy accordingly. Like Blockbuster failed to capitalize on the resources they had with themselves to see their end, while Netflix emerged from asses catering to the needs of the current generation. One must thus be able to not only identify the opportunity but be able to capitalize on it. This environment can thus foster the business with transformative, feasible, productive and economical business. With the economic and social revolution, entirely new industries which one hadn’t even envisioned emerged - few of these being outstanding new companies, not just the old one. Thus, with the capital availability and opportunities in this age and time, economic and social revolution resultant opens new doors for opportunities.
Lindenmeyer, K. (2002). Citizenship, Gender, and Urban Space in the Gilded Age and Progressive Era. The Journal Of The Gilded Age And Progressive Era , 1 (01), 95-106.
Palat, R. (1997). The Age of Extremes: A History of the World, 1914-1991. Journal Of World History , 8 (1), 179-181.
Wright, G. (1987). The Economic Revolution in the American South. Journal Of Economic Perspectives , 1 (1), 161-178.
The world is changing in faster and deeper ways. This change has brought with it growth, opportunity and job creating (Tyszko, 2017). For example, Physically America is far from Nepal but technologically it is very nearer. We can communicate with our friends, business partner and others within a milliseconds. So this means we can do business all over the world from anywhere but we should have a business plan. The technology tools changes the business paradigms. Now we can do business from our home and we can sell our dinner, breakfast and lunch as a business product. Foodmario is a business start - up which directly connect consumer to home for breakfast, lunch and dinner package. So different technology tools like smartphones, software’s, laptops provide a good platform to start a business. In 5 years ago doing business between Africa and Nepal was difficult. But now it is very simple process.
In this time one small things can change the world. One simple idea makes world better. One simple business innovation can change whole business process. For example Facebook is a simple project of Undergraduates students of Harvard’s University, he just wanted to connect his all college friends in a single platform but later he saw the scope of communicating all people in a single platform might be perfect business model. So he started his business, which is one of disruptive innovation of business process. So in short, Not a small task but this is what’s required to fuel the growth we need for business, workers and communities share in the benefits growth creators (Cavallo, 2016).
Opportunity is central part of entrepreneur thought and action because opportunity need to be identified or created then it to ON or it to be shaped. Opportunity is a favorable set of circumstances where you can provide a solution or new way of doing things. Opportunity can be a new market or can be new product or service. Opportunity can be disruptive technology. If we think about the internet that was a disruptive technology that allows to have many new possibilities business opportunity and solution. Another cause of opportunity is an industrial changes. The industrial revolution meant that production could take place ON an enormous scale. In traditional business system had some problem with fixed cost and Marginal cost. There is high difference between fixed cost and marginal cost. So that we paid high price for product and service. But in this modern digital business, advancing technology, and transportation and telecommunication main production would be cheaper, because of outsourcing Jobs, automation of computer software, replace the job of human by machine, increase access to information, consumer can buy a good on online platform from their home. These force has started to reduce the marginal cost and provide a good cheap price.
At this time we can easily test our business idea in a very cheap way. If public trust us then we will be a millionaire on tomorrow. The way we run our business today is completely different that has been last 5 to 7 decade. The way where the company market their products is completely different. There is a cultural and economic change happing and happing right now. In currently advance our business is simple through word of mouth advertisement. Think about, how did we heard about Facebook, how did we heard about Snap chat, Insta, UBER and Netflix. We heard it about from our friends so right now we have the opportunity just like 50000 people every month joining UBER and it totally replaced other Taxi system. So it was best business opportunity of Digital business system to generate a revenue (Robort, D, 2016). So Facebook has connected 3 billion people from all over the globe and we can use this as an advertisement platform for our new startup business. So we have many opportunity to set up our own business and generate a revenue from very low capital.
Cavallo, M. (2016). The growing importance of the technology economy. Florida International Bankers Association (FIBA).
Robort, D. (2016). Innovation Economics: The Race for Global Advantage. Yale University Press .
Tyszko, J. (2017). The Opportunity in the New Economy. U.S. Chamber of Commerce Foundation.
People have started to realize the potential for new venture and enterprise in contrast to the traditional method of holding jobs. The dynamic of holding a job mind-set has been shifting towards owning business in the young generation of late.
New venture is the single most force that overthrows social stigma of religion, colour, social class, national origin etc. animating people to pursue their dreams no matter how different it may seem and realise it or fail and try again. This venture rewards people having talent and innovation as it is opportunity cantered. (Spinelli, Jr. & Adams) Changes and effects of economic and social revolution is something that is inevitable and unstoppable. The only way to be prepared for it is by being able to adapt to the changes that this new wave of economic and social revolution will bring. The threshold of new ventures cannot be curbed as these days social and economic revolution has changed the face of business for ever. You do not require your father to be a businessman for you to venture into business. You do not require huge capital or assets to pursue your dreams. All you need to do is be innovative and have perseverance to face ups and downs that will challenge you all the way.
Another way to be prepared for such tidal change is to understand and see the changes happening around and adapting well to it. People’s perception is different to that of reality most of the time. People do what they perceive and these perceptions does not always make sense. With social and economic revolution, the social gap of higher and lower class will be reduced, there will be more people with purchasing capacity and thus have more demands and requirements than before. These are some ways you can stay prepared for the changes resulting from social and economic revolution.
Spinelli, Jr., S., & Adams, R. (n.d.). New Venture Creation . New York City: McGraw-Hill Irwin.
The industrial revolution in Europe from 1750 to 1941 changed it economically, politically and socially. The automated inventions, increasing number of working women, urbanization and distribution of wealth were some of the major outcomes of the revolution that is still affecting the world we live in (Valectorian’s Note, 2011). Due to the economic and social revolutions, the organizational structure, economic activities, employment opportunities, banking practices and policies, literacy levels, job preferences, standard of living, purchasing power, quality of life, perception towards new ventures has changed making the life of people better, easier and comfortable. This is significantly affecting the opportunities and capital availability for the business.
The opportunities and methods of acquiring capital for business has increased along with the revolution. However, innovation and creativity is must for grabbing the opportunities and gaining benefit from capital change. The technological advancement has changed the way of doing business. So, incorporating the changes in social, economic and technical environment is must for any business. Unlike the traditional practices, we do not have to belong to the upper higher class or business family to be a businessman. These days, the new generation is more into starting their own business and the start-ups can be initiated even with low investment.
The changes are inevitable and beyond the control of the organization. However, the company can be prepared to adapt itself with the change. For instance, the organization should have flexible operating policies and procedures to cope up with the changes in needs, preferences and tastes of the customers. The most important thing is to remain open to new ideas and keep the learning attitude. We constantly need to monitor what is going around us and make necessary planning if we sense that something is going to change affecting the way we are operating.
Thus, the revolution offers numerous opportunities and we just need to develop right strategies to capitalize those opportunities. This provide options for creating entirely new business or modifying the current business processes. The increasing number of e-commerce site is an example to capitalize in the changing interest of people and market.
Valectorian’s Note. (2011, October 2). Political, Social and Economic Effects of the Industrial Revolution. Retrieved from https://valedictoriannotes.wordpress.com/: https://valedictoriannotes.wordpress.com/2011/10/02/political-social-and-economic-effects-of-the-industrial-revolution/